Due to the failure of nursing homes in providing adequate care to the elderly, a new industry has emerged in the United States, which is rapidly gaining popularity among caregivers and their aging loved ones. This industry is commonly known as Adult day care, which aims at providing socializing and medical services to the aging and ailing population of our country. The paper sheds light on the emergence of this industry and the reasons for its rapid growth along with such subjects as rights of participants and the common features of a suitable adult day care program. The paper discusses cost-related issues associated with these programs in detail.